In today’s competitive job market, attracting and retaining top talent is one of the biggest challenges facing businesses. Traditional benefits packages often fail to meet the unique needs of a diverse workforce, leaving both employees unsatisfied and employers struggling to maintain a motivated team. A one-size-fits-all approach rarely works, and this is where customized Lifestyle Spending Accounts come into play.
What are Lifestyle Spending Accounts & how do they work?
It’s not an increase in salary, but functions as a part of their benefits package beyond their 401k, medical, dental, vision, and commuter benefits. It’s a multi-part benefit that could include physical wellness aspects, micromobility, paid carpooling, pet care, entertainment, grocery stipends, nutritional counseling, financial counseling, and even continuing education elements.
You pick the benefits that fit your culture, set a monthly spending limit, and we do the rest. Edenred offers prepaid cards, online platform, and mobile app for your employees to use. Your employees can track their spending limits and expenditures, get customer support, report a lost or stolen card, or even submit a reimbursement request.
How much should you set aside?
When it comes to offering Lifestyle Spending Accounts (LSA), one of the key questions employers grapple with is, “How much should I offer?” According to the U.S. Bureau of Labor Statistics benefits can make up about 31% of an employee’s pay. So, for your calculations, it will be what your company’s budget allows for after insurances, retirement, and FICA is taken into consideration.
So, whether that is $1,000 a month or $300, it’s really about what makes sense for you fiscally. The main thing you must remember is that these benefits are offered to attract talent and reduce turnover – and it costs thousands to locate and train new employees. The more quality talent you retain because of carefully curated benefits, the less you have to spend finding new employees.
We are right here and ready to offer support
However, just setting up an LSA doesn’t guarantee success. The lack of customization in benefit offerings can often lead to a mismatch between what the company offers and what the employees truly value. Which is why we work with you to customize an LSA that matches your company’s specific culture. This is not an “all or nothing” benefit.
By tailoring your benefits offerings, you’re able to provide options that resonate with a diverse workforce. This increased personalization demonstrates that you value your employees as individuals, which can lead to increased job satisfaction and loyalty.
Our goal at Edenred Benefits is to be your everyday companion at work. If you’ve been looking for a surefire way to attract and retain top talent, significantly lower turnover, and build a culture of positivity at your workplace, we can help. Schedule a meeting with us today to learn more about our Lifestyle Spending Accounts program.